Etihad Airways hires 747 operator Western Global to expand cargo service

Etihad Airways has enlisted U.S.-based Western Global Airlines, still struggling to recover after exiting bankruptcy 18 months ago, to support expanded freighter service to China and London by operating a Boeing 747-400 on its behalf, FreightWaves has learned.

The airline’s cargo division in April announced it was adding three weekly all-cargo flights to Shenzhen, China, and two weekly flights to London Stansted Airport via its Abu Dhabi hub to meet growing demand on key trade lanes. Etihad Cargo, which operates five Boeing 777 freighters and manages belly cargo carried by passenger aircraft, said it was supplementing its capacity with a wet-leased 747 cargo jet from an unnamed provider to carry e-commerce, pharmaceuticals, perishables and other goods between Asia, Europe and the Middle East.

After several weeks of delay, Etihad appears ready to commence the new freighter service.

Etihad Cargo officials declined to identify the airline providing the outsourced transportation service, but an email response from a media representative inadvertently included program details from someone else in the company who was copied on a reporter’s query.

According to the message, Etihad has signed a contract with Western Global. FreightWaves has known about the arrangement for a month but waited to publish a story until there were signs that service had materialized. As of early June, the new freighter services had yet to commence, flight tracking data shows.

But a Boeing 747-400 operated by Western Global landed on Tuesday at Shenzhen Bao’an International Airport, according to Flightradar24. An industry source, who asked not to be identified to protect ongoing business relationships, confirmed the presence of the Western Global freighter in Shenzhen.

The Western Global capacity will give Etihad Cargo 17 weekly freighter rotations per week, up from the current 14, to China, with one more flight expected to be added later this year, according to company officials. Etihad finished last year with 11 direct flights to China. The goal for 18 freighter flights per week is down from the 23 planned flights Etihad promised in January.

Privately held Western Global early this decade had a fleet of 21 freighter aircraft. It reorganized under bankruptcy protection in 2023 because of falling revenues as freight markets normalized from pandemic highs, a high debt load and rising maintenance costs for its aging fleet. The company now operates seven freighters. Only four of its 17 MD-11 cargo jets are currently in service, according to aircraft databases. 

Western Global Airlines lost $33 million last year, an improvement from 2023’s $62 million loss, according to U.S. Department of Transportation data. Operating revenue improved 1.9% last year to $213 million but was outpaced by $240 million in operating costs. Revenue per ton mile improved nearly 15% to 89 cents.

SF Airlines partnership

Earlier this week, Etihad and China’s SF Airlines agreed to expand their August 2023 capacity-sharing agreement under which they conduct freighter flights to their respective home bases in Abu Dhabi and Ezhou to increase connectivity for each other’s customers. Last year, the two companies increased freighter frequency on that route and launched a new service between Shenzhen and Abu Dhabi. Etihad helps SF Airlines, the private airline of SF Express, reach Europe by transferring parcels in Abu Dhabi to passenger aircraft and freighters serving the continent. Etihad benefits because SF has more traffic rights out of China and Hong Kong than Etihad, while Etihad can reach more destinations in Europe, the Middle East and India than SF Airlines.

The business arrangement calls for the airlines to jointly market and integrate their airfreight services with the aim of increasing cargo capacity, flexibility, tailored products, service efficiency and the range of available destinations for shippers. The partners said they will also coordinate pricing strategies and route allocation, and align service standards. The joint venture will focus on supporting the movement of high-value electronics, sensitive equipment and temperature-controlled pharmaceutical goods. 

“By working closely with SF Airlines, we are expanding our service offerings, optimising operational efficiency and enhancing our competitive position in the air cargo industry,” said Etihad Airways CEO Antonoaldo Neves in a news release. 

Etihad Cargo this week also committed to strengthening its presence at Ezhou Huahu Airport by adding flights, opening new routes and developing joint products that support cross-border e-commerce, cold chain logistics and high-value manufacturing.

Etihad Cargo currently operates four Boeing 777 freighters per week to Ezhou Huahu Airport. The airport, which opened in 2022, is Asia’s first dedicated cargo airport and includes 135 aircraft stands, dual runways and the capacity to handle 1.1 million tons of cargo annually.  

Etihad’s cargo division this week also introduced a high-tech label from Tag-N-Trac for real-time shipment tracking. Sensors can capture the exact location, temperature and humidity, shock and tilt events, and light exposure. The data is transmitted with the help of cellular, Bluetooth and Wi-Fi connectivity. The smart label, which can remain active for up to 30 days, features minimal packaging and eliminates the need for return logistics, as is the case for hard devices, Etihad said. SmartTrack will be available to customers via the Etihad Cargo website and mobile app starting in October.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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